Microsoft Windows XP Sales Exceed 17 Million Copies Just Over Two Months After Worldwide Debut

LAS VEGAS, Jan. 7, 2002 — Today at the 2002 International Consumer Electronics Show (CES), Microsoft Corp. Chairman and Chief Software Architect Bill Gates announced that just over two months after its worldwide debut, license sales of the Microsoft® Windows®
XP operating system have soared to more than 17 million copies. The surge in consumer demand for Windows XP reflects the strength of Microsoft’s newest Windows operating system as a platform both for today’s compelling digital media solutions and for emerging technologies.

The over 17 million licenses of Windows XP were sold by computer manufacturers on new personal computers and through upgrades and full packaged product available from retailers throughout the world since Oct. 25. Sales of licenses of Windows XP by computer manufacturers are more than 300 percent higher than that of Windows 98 and 200 percent higher than that of Windows Millennium Edition (Windows Me) over the same period. Not only has Windows XP been in high demand among consumers, it has been a catalyst for sales of new personal computers as well as exciting new devices, such as digital cameras, and new software applications.

“Today, just two and a half months after the launch of Windows XP, more than 17 million people are enjoying the new experiences, stability and security that Windows XP offers,” Gates said. “This is our best-selling release of Windows ever, and one that is creating great opportunities for PC manufacturers and our other partners in the industry. We’ve seen a significant upturn in sales of digital cameras, printers, and other peripherals and software that enable people to experience their PC in a new way.”

Industry Reports Unprecedented Demand for Windows XP

“The strong response from our customers has shown that Windows XP is making people’s computing experiences more productive and more fun,” said Michael Scharff, vice president of computers at Best Buy. “As the No. 1 retailer of Windows XP software and preloaded computers, Best Buy looks forward to showing even more consumers how the Windows XP experience can extend the role of their PC in new and exciting ways.”

“We have experienced strong sales this holiday season for Fujifilm FinePix digital cameras, especially the FinePix 2600 Zoom, which was one of the top-selling cameras,” said Paul D’Andrea, vice president of Marketing, Consumer Imaging Markets, at Fuji Photo Film USA Inc. “We attribute the continued success of digital camera sales to tools such as Windows XP that help make digital photography even easier.”

“All our notebook and desktop PC line that has been released since the launch of Windows XP has been available with the new operating system, and the market has responded with enthusiasm,” said Mark Hanson, vice president of VAIO PC Marketing at Sony Electronics. “Consumers are realizing the value of combining VAIO PCs that have the features and connections to access and use content from virtually any digital device with Microsoft’s content-friendly software. Windows XP intensifies the joy of what can be done on a VAIO personal computer.”

Windows XP Recognized Across the Industry

Microsoft is receiving great acclaim for Windows XP. Since its availability, Windows XP has been honored with a number of prestigious technology awards. Windows XP received the PC Magazine Technical Excellence Award for desktop software and was named one of the magazine’s Best Products of 2001. BusinessWeek recognized Windows XP as one of its Best Products of 2001, Fortune recognized the new operating system as one of its annual Favorite Things, and Popular Science named Windows XP one of the Best of What’s New for 2001.

About Windows XP

Windows XP — the new standard for efficient, dependable computing — gives users the freedom to experience the digital world by building on the momentum of the Internet and digital media with improvements that increase productivity and provide both business and home users with an easy-to-use and exciting PC experience. Windows XP puts the exciting experiences of the digital age at users’ fingertips by uniting PCs, devices and services, and brings the solid foundation of Windows 2000 to home PC users, enhancing reliability, security and performance. More information on Microsoft Windows XP can be found on the Microsoft Web site at http://www.microsoft.com/windowsxp/ .

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software — any time, any place and on any device.

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